The Premier’s Liquefied Natural Gas Working Group:
Final Report
Prepared for the Honourable Christy Clark, Premier
& the Honourable Shirley Bond,
Minister of Jobs, Tourism and Skills Training and Minister Responsible for Labour
Prepared by the Premier’s LNG Working Group
March 31, 2014
Final Report to the Premier and Minister of Jobs, Tourism and Skills Training and Minister Responsible for Labour
Premier’s LNG Working Group – March 31, 2014 Page 1 of 33
CONTENTS
EXECUTIVE SUMMARY ........................................................................................................... 2
I. INTRODUCTION ................................................................................................................ 3
II. BACKGROUND AND CONTEXT ...................................................................................... 4
The LNG Opportunity ............................................................................................................. 4
The LNG Challenge ............................................................................................................... 6
Major Projects Underway in B.C. – Now and to 2023 ............................................................. 7
Labour Supply Conditions in Northern British Columbia ......................................................... 8
The Workforce Needs to Build an LNG Facility ...................................................................... 9
On-Going Work on LNG: “B.C. Natural Gas Workforce Strategy and Action Plan” ................. 9
III. TERMS OF REFERENCE – PROPOSED STRATEGIES AND SOLUTIONS ...................10
TOR #1 .................................................................................................................................12
Training .............................................................................................................................12
Education and career path mapping ..................................................................................17
Plan for apprenticeships and skilled labour........................................................................19
TOR #2 .................................................................................................................................21
Identify organizations that have delivered by way of a mobile workforce ...........................22
Improve public perception to attract and retain workers to rural and northern B.C. ............23
Make LNG construction and operations as attractive as possible ......................................24
Develop a plan to support workers from other jurisdictions to stay in B.C. .........................25
TOR #3 .................................................................................................................................25
IV. NEXT STEPS AND CONCLUSION ..................................................................................27
Appendix I: Terms of Reference .............................................................................................28
Appendix II: Working Group Participants and Meetings ..........................................................29
Appendix III: Status of Liquefied Natural Gas (LNG) Projects in B.C. as of March 31, 2014 ....30
Appendix IV: References and Resources ................................................................................33
Final Report to the Premier and Minister of Jobs, Tourism and Skills Training and Minister Responsible for Labour
Premier’s LNG Working Group – March 31, 2014 Page 2 of 33
March 31, 2014
Dear Honourable Premier Christy Clark and Honourable Minister Shirley Bond:
On behalf of the Premier’s Liquefied Natural Gas (LNG) Working Group, I am pleased to submit
to you the following final report which is issued with the support and agreement of all the
members of the Working Group. You will see that we have leveraged the work done in the
interim report we tabled with you on January 31, 2014 to identify more concretely strategies and
solutions to address the training and workforce challenges associated with the LNG opportunity.
We are hopeful that this final report facilitates the ability of all stakeholders to move forward
collaboratively, constructively, and purposefully.
Yours truly,
Trevor Hughes
Chair, Premier’s LNG Working Group
Assistant Deputy Minister, Industrial Relations and Labour Programs
Ministry of Jobs, Tourism and Skills Training and Minister Responsible for Labour
<><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><>
EXECUTIVE SUMMARY:
In September 2013, the Premier of British Columbia, the Honourable Christy Clark, convened a
meeting between government and leaders of the organized labour movement. The objective
was to outline the province’s vision for the Liquefied Natural Gas industry and engage the labour
movement in a discussion about their role in making the opportunity achievable. The result was
the development of Terms of Reference and the establishment of the Premier’s LNG Working
Group with representatives from organized labour, industry, First Nations, and the province to
review the skills training and workforce planning issues associated with the LNG opportunity.
From November 2013 to March 2014, the Working Group’s 18 representatives met nine times
and developed an interim report and this final report which contains 15 non-binding
recommendations. Of particular importance in the recommendations is the need to establish,
before July 1, 2014, a structure to further the dialogue and relationships established in the
Working Group and work to implement the recommendations contained in this report if they are
endorsed in whole or in part by government. The remaining recommendations, including those
regarding the use of Temporary Foreign Workers, all relate to the structure for continuing the
important work that has already begun to make LNG a reality in British Columbia.
Final Report to the Premier and Minister of Jobs, Tourism and Skills Training and Minister Responsible for Labour
Premier’s LNG Working Group – March 31, 2014 Page 3 of 33
I. INTRODUCTION:
On September 9, 2013, the Honourable Christy Clark, Premier, convened an unprecedented
meeting between herself and the Honourable Shirley Bond, Minister of Jobs, Tourism and Skills
Training and Minister Responsible for Labour, with leaders of the organized labour movement,
including Jim Sinclair, President of the British Columbia (B.C.) Federation of Labour, and Tom
Sigurdson, Executive Director of the B.C. and Yukon Territory Building and Construction Trades
Council. Also in attendance were representatives of many of the unions representing a variety
of trades in the private sector, including, but not limited to, electrical workers, insulators,
plumbers and pipefitters, operating engineers, and painters.
One of the objectives of the meeting was to outline
the province’s vision for Liquefied Natural Gas (LNG)
as a generational opportunity to improve the state of
the province’s economy and improve the lives of the
citizens of the province. In addition, the Premier
intended to engage the labour movement in the
challenge of ensuring the training and workforce
opportunities associated with LNG go to British
Columbians first. As a result, the Premier proposed
the establishment of a government/industry/organized
labour/First Nations working group to work together,
under specific Terms of Reference (see Appendix I),
to focus on how to work together to solve some of the
complex challenges associated with the LNG
opportunity.
The Premier’s challenge was accepted by the represented members from organized labour,
industry, and First Nations with all groups recognizing the significance of the economic
opportunities at stake for British Columbians in terms of economic development, and creating a
skilled workforce that can help to develop a myriad of other projects that are critical to B.C.’s
future success.
Final Report to the Premier and Minister of Jobs, Tourism and Skills Training and Minister Responsible for Labour
Premier’s LNG Working Group – March 31, 2014 Page 4 of 33
This unprecedented Working Group was established with representation from the groups
identified below. Appendix II provides detail on each of the representatives for the organizations
listed below.
Government Industry Labour First Nations
Ministry of Jobs, Tourism
and Skills Training and
Minister Responsible for
Labour (Labour Division
and Labour Market and
Immigration Division)
Progress Energy
Canada Ltd. and
Pacific NorthWest
LNG
United Association of
Journeymen & Apprentices
of the Plumbing &
Pipefitting Industry of U.S.
and Canada, Local 170
Haisla Nation
Ministry of Finance
(Public Sector Employers’
Council Secretariat)
Chevron Canada Ltd.
(Kitimat LNG)
B.C. and Yukon Territory
Building and Construction
Trades Council
Ministry of Advanced
Education (Strategic
Policy and Planning)
BG Canada (Prince
Rupert LNG)
B.C. Federation of Labour
Ministry of Natural Gas
Development (LNG Task
Force)
Shell (LNG Canada) B.C. Government and
Service Employees’ Union
Spectra Energy Construction & Specialized
Workers’ Union, Local 1611
(Labourers)
TransCanada Sheet Metal Workers’
International Association,
Local 280
II. BACKGROUND AND CONTEXT:
The LNG Opportunity:
Over the past year, much has been written in a variety
of forums about the LNG opportunity that exists in B.C.
LNG has the potential to be the start of a new industry,
leading to the biggest energy development projects in
B.C.’s history. The opportunity has the potential to
reshape B.C.’s economy as well as transforming its
labour force, leaving a legacy for skills development,
and providing high paying employment opportunities
for generations to come.
Final Report to the Premier and Minister of Jobs, Tourism and Skills Training and Minister Responsible for Labour
Premier’s LNG Working Group – March 31, 2014 Page 5 of 33
British Columbia is an attractive location for
potential LNG investments and facilities given
its proximity to Asia, large and stable
reserves of natural gas and a strong and
predictable regulatory regime. By leveraging
these advantages, there is an opportunity to
realize significant increases in provincial
government revenues while at the same time
creating thousands of high paying jobs with
transferable skills.
As of March 2014, 13 LNG export facilities have been proposed or announced in B.C.,
representing multiple joint venture partnerships with international, domestic, and First Nations
interests. The full value chain for these projects includes the development of natural gas
resources in northeastern B.C., construction and operation of natural gas pipelines to the
northern B.C. coastline, and the construction and operation of LNG facilities.
Most of the proposed project sites are
centered on the northern B.C.
coastline. Four projects have been
proposed within the District of Kitimat,
two in the Port of Prince Rupert, and
two LNG proponents have signed
sole proponent agreements that
provide the companies with the
exclusive right to negotiate a long-
term tenure for an LNG facility at
Grassy Point. Two other sites have
been proposed outside of the
northwest – one near Squamish and
the other in Campbell River. Several
new proposed projects have yet to
determine a site. As of March 2014,
11 companies had applied to the
National Energy Board for a licence
to export LNG with seven licences
granted. Finally, as of March 31,
2014, there have been two LNG
facilities proposed for domestic use
purposes – fuelling the transportation
sector, marine sector, and heavy machinery (see Appendix III for details).
Further detail on the LNG opportunity can be found in the references included in Appendix IV.
Final Report to the Premier and Minister of Jobs, Tourism and Skills Training and Minister Responsible for Labour
Premier’s LNG Working Group – March 31, 2014 Page 6 of 33
Top 10 Construction-
Related Jobs with the
Greatest Demand
1. Steamfitters &
pipefitters
2. Construction traders
helpers & labourers
(including riggers)
3. Welders
4. Concrete finishers
5. Heavy equipment
operators
6. Carpenters
7. Truck drivers
8. Purchasing agents &
officers
9. Gas fitters
10. Crane operators
* Sourced from the B.C. Natural Gas
Workforce Strategy and Action Plan
July 2013
The LNG Challenge:
LNG development exists within a global market that
is defined by both the competition to establish long-
term supply contracts with foreign markets by
providing LNG at a competitive cost and the
requirement to attract a skilled labour pool that is
essential to bringing LNG to market. The labour
market, both domestically and internationally, is
highly competitive. LNG as an industry has various
projects that are seeking to attract skilled and
trained labour, and there is also a level of
competition external to the LNG sector that sees
other major industrial projects within B.C., Canada,
and around the world also working to attract and
secure many of the same skilled workers. Adding
to these challenges are other considerations that
include the federal and provincial environmental
assessment and permitting processes, the
development of a clear and competitive fiscal
framework for the LNG value chain, and the
importance of gaining necessary support for the
projects from First Nations, local communities and
other stakeholders.
Further, attracting and retaining the required skilled
labour (whether unionized or non-unionized)
remains one of the largest challenges for the LNG
industry. This includes engaging under-
represented communities in the north of the
province through to encouraging an even more
mobile workforce that is able to transition from
project-to-project as necessary. In light of the
workforce challenges, the Working Group
unanimously supported the principle of ensuring
that as many British Columbians and Canadians as
reasonably possible benefit from the skills training
and employment opportunities that the full LNG
value chain (upstream, pipelines, and LNG
facilities) presents. The Working Group discussed
the importance of the mobility of labour across B.C. and Canada to the success of the LNG
opportunity. The Working Group also discussed the challenges associated with the use of
temporary foreign workers to develop the LNG opportunity such that there was agreement to
understand the lessons and best practices from other projects as a way to limit their use, but
also to plan accordingly for their use if and when needed.
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Premier’s LNG Working Group – March 31, 2014 Page 7 of 33
Major Projects Underway in B.C. – Now and to 2023:
The Working Group understands that the development of a new LNG industry is not occurring
within a vacuum. Specifically, between now and 2023, there are a variety of major projects
either underway or in the planning phase. Many of these projects will compete for the same
skilled tradespersons and other skilled occupations – all at a time when B.C. already is facing
challenges linking southern B.C. workers with northern B.C. jobs, which is compounded by an
actual shortage of skilled workers needed to perform the work. Also of note is that many of
these projects will be occurring at the same time, albeit in different phases, which presents a
potential opportunity for the sequencing of labour.
To provide some context to
what this will look like, the
Working Group reviewed the
workforce needs estimated for
major projects in northern B.C.
provided by the Ministry of
Jobs, Skills Training and
Tourism and Minister
Responsible for Labour (JTST).
The Ministry updates this
information periodically and, as
of February 2014, provided the
following description for major
projects across all sectors and
all regions of the province:
between 2013 and 2023, there are an estimated 47 projects
planned worth more than $500 million each, representing an expected total investment of $165
billion (more information on major projects is available here). Each of these projects, like LNG
projects, has a construction phase and an operations phase so will require significant skilled
labour at various points during construction (although it should be noted that not all projects may
come to fruition).
In addition to the planned LNG facilities and their associated upstream activities in B.C., there
are several types of major projects that will be undertaken in B.C. and other jurisdictions in
western Canada concurrently over the next ten years (thus, the competition for access to skilled
labour). Key active sectors set to expand with project development include hydro-electricity
(e.g., Peace River Site C Dam, Northwest Transmission Line, and Kemano Tunnel), oil and gas
(e.g., Cabin Gas Plant, Fortune Creek Gas Plant, and Dawson Liquids Extraction Project),
mining (e.g., Quintette Coal Mine, Red Chris Porphyry Copper/Gold, Avanti Kitsault, and
Blackwater Gold), and other projects (e.g., Rio Tinto Alcan Kitimat Modernization Project and
Prince Rupert Port Expansion). While construction timing will fluctuate, each project will be
competing for highly qualified skilled and less-skilled labour at roughly the same period in time.
Final Report to the Premier and Minister of Jobs, Tourism and Skills Training and Minister Responsible for Labour
Premier’s LNG Working Group – March 31, 2014 Page 8 of 33
What is significant is that the peak
years are as early as 2016 and 2017
(subject to final investment decisions)
when thousands of construction jobs
are projected to be needed. While
many of these jobs will be
tradespersons such as pipefitters,
welders, electricians, carpenters, and
millwrights, there will also be a need
for skilled labourers as well as workers
in a variety of occupations, including
engineers, transportation and logistics,
operators, technologists, and
technicians (e.g., oil and gas well
drillers), and management/supervisory
personnel.
Labour Supply Conditions in Northern British Columbia:
The next component of the LNG challenge relates to the labour supply conditions, particularly in
northern B.C. This is a key risk factor for the LNG proponents for a number of reasons. The
large number of job opportunities in the north, including for LNG, present a challenge when one
considers the size and make-up of the workforce in the northern part of the province. In
general, the labour market in the north features a much smaller population than in the southern
areas of the province. According to data provided by the Labour Market and Immigration
Division of JTST, the northern B.C. labour force is estimated at 80,000 people which is 3.7
percent of the provincial labour force.
According to the same data, the median age in the north is 37 compared to the rest of the
province which has a median age of 41. The northern workforce has a lower percentage of
immigrants (9 percent compared to 29 percent provincially) yet a higher percentage of First
Nations (28 percent compared to 5 percent provincially). In the north, unemployment for First
Nations people with a trades or apprenticeship certificate is 21.9 percent and 8.3 for non-First
Nations people. There is also an opportunity to address the workforce challenges of northern
B.C. when one considers that there will be 25,000 new entrants to the labour market over the
next decade as children graduate from the K-12 system. Further, there is the challenge of the
mobility of labour as employers aim to facilitate the movement of people to where the work is (in
this case northern B.C.). This challenge is not unique to B.C. as it exists across Canada and
other developed nations.
Essential skills training for many British Columbians may be required to ensure access to this
work. In order to maximize local hiring for LNG projects, this training needs to start well in
advance of construction.
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Premier’s LNG Working Group – March 31, 2014 Page 9 of 33
The Workforce Needs to Build an LNG Facility:
To understand the estimated workforce needs required to construct and operate one LNG
facility and related infrastructure (upstream facilities and pipeline), the Working Group reviewed
a theoretical model based on some of the past experiences of the Working Group’s industry
representatives. This model takes a five-year view, and assesses the pre-construction,
construction, and operational phases. In doing this, it creates an approximation of the number
and types of trades that are needed in each year and in each phase of a project. The aim of
this approach is to create a framework that can be extrapolated to estimate the needs of
multiple LNG facilities and pipelines, regardless of the number of projects that are realized, as
well as the numbers and types of skilled labour that would be needed at any given time in
construction. As final investment decisions are still pending for proposed projects, this
approach was seen to be more flexible to determine labour needs and to inform how to
maximize the existing workforce (and thus determining approximately how many more workers
could be needed).
It is instructive to go one step further and
analyze the needs to build one LNG facility.
One of the LNG proponents shared detailed
conceptual/approximate data to the Working
Group showing the craft trade breakdown for
the building of a hypothetical LNG facility. The
LNG facility is for two “trains” producing a total
of 8.5 million metric tons of LNG per annum.
Note that a “train” is an LNG plant’s processing
unit which liquefies and purifies the natural
gas.
On-Going Work on LNG: “B.C. Natural Gas Workforce Strategy and Action Plan”:
In March 2012, the B.C. Natural Gas Workforce Strategy Committee was formed to review
workforce needs related to LNG projects. Comprised of industry, government, First Nations,
and the Resource Training Organization, the Committee issued a Strategy and Action Plan in
July 2013 which highlighted high-level strategies and specific actions it views as being required
to build capacity within industry, labour supply partners, and communities to address current
and future LNG-related construction and operations workforce requirements.
The Strategy and Action Plan also examines the potential labour supply that will be available for
the construction and operation of LNG facilities. One of the key observations is that B.C.’s
labour force will “simply not be able to meet the labour demand generated by the growth of the
province’s natural gas industry” (from page 3 of the Strategy and Action Plan). The paper then
identifies a series of actions designed to increase local talent (e.g., by addressing barriers to
local labour force participation and by developing skills and qualifications in local labour pools)
and to attract and retain talent from other locations (e.g., by relocating workers from other
regions and/or jurisdictions). The Strategy and Action Plan informed the Terms of Reference for
the Premier’s LNG Working Group.
Final Report to the Premier and Minister of Jobs, Tourism and Skills Training and Minister Responsible for Labour
Premier’s LNG Working Group – March 31, 2014 Page 10 of 33
III. TERMS OF REFERENCE: PROPOSED STRATEGIES AND SOLUTIONS:
As noted above, following the Premier’s meeting with private sector union leaders on
September 9, 2013, Terms of Reference (TOR), which had been proposed at the meeting, were
finalized and agreed by the Working Group (see Appendix I). An initial meeting was held on
November 12, 2013 in Vancouver, followed by two meetings in each of December 2013 and
January 2014. The purpose of the first meeting was to set the context for the task of the
Working Group, including a presentation on the labour market challenges associated with the
LNG opportunity. The two December and two January meetings focused on the TOR and the
plan for the development of the interim report which was submitted on January 31, 2014. The
two February and two March meetings focused on the development and content of this final
report.
It is important for the acceptability of this final report by each participating organization to
comment on how the Working Group approached its analysis of the TOR and the solutions and
opportunities they present. There was unanimity on how to approach the task and the Working
Group wanted to have an open and frank exchange of ideas. To support that dialogue, the
Working Group agreed on the following principles. The first principle was that no idea or
solution would be attributed to any member of the Working Group or representative
organization. The second principle was that the interim report would not include specific
recommendations or advocate for proposed solutions and opportunities. There was agreement
that this final report would be the place for any recommendations or actions for consideration
and implementation by government, industry, organized labour, and First Nations. Third, any
recommendations or actions within the final report are expressly acknowledged as being non-
binding on any members or organizations within or beyond the Working Group.
There were other important notions discussed in the Working Group’s meetings. First, there
was agreement that the industry representatives would provide as much information as possible
to facilitate open discussion, but there would not be any disclosure of proprietary information. In
addition, industry representatives were not asked to do anything to harm their competitive or
negotiating position (in any respect). As noted in the meetings, there is a shared desire and
some measure of agreement to work together on certain elements of how to address the skills
training and workforce challenges presented by the LNG opportunity. There is also a very
clearly expressed desire amongst all members of the Working Group that the LNG opportunity
in relation to workforce needs should benefit as many British Columbians as reasonably
possible. It was viewed by the entire Working Group that LNG facilities should be built and
operated, where practical, by as many workers living within local communities and from within
B.C and Canada as possible, followed by foreign workers either through immigration or foreign
worker pathways. The Working Group viewed its structure and function as providing the
opportunity to lay some of the groundwork for these shared objectives.
The Working Group agreed that the TOR should be split into three distinct groups by reviewing
the first paragraph as TOR #1, paragraphs two and three together as TOR #2 (due to the
linkages between them), and the final paragraph as TOR #3.
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Premier’s LNG Working Group – March 31, 2014 Page 11 of 33
The interim report contained a summary of the discussion of a number of possible solutions and
opportunities identified by the Working Group to each of the three TOR, along with a series of
questions about each solution or opportunity. The thinking of the Working Group prior to the
completion of the interim report would be that we would work on examining the utility of each of
the solutions and opportunities to determine which would be priorities for the final report and
which would fall away. However, in the meetings after the finalization of the interim report, it
became clear to the Working Group that each of the categories of possible solutions and
opportunities have significant value and should be pursued to the extent possible. In addition,
what also became clear was the commitment from each of the Working Group participating
organizations, notwithstanding the TOR noting a final report due on March 31, 2014, to continue
to work together beyond this date. There is no question that the participating organizations
have different mandates, priorities, and stakeholder interests – yet, over the term of our work
together, there was clearly growth in the commitment to work together, both within groups (e.g.,
industry participants) and across groups (e.g., organized labour with industry). While each of
the organizations took their participation seriously and were careful to note areas of concern,
they were all surprised by the number of issues on which they agreed in relation to the TOR and
the importance of making progress not only in this March 31, 2014 final report – but beyond and
into the future for the benefit of all British Columbians.
Before proceeding with specific strategies and
solutions related to the TOR, there is one over-arching
recommendation that the Working Group identified as
being fundamentally important to realizing a successful
LNG industry and creating actual LNG-related jobs for
British Columbians. As indicated above, the Working
Group was established in September 2013 with this
final report due on March 31, 2014 which effectively
makes the Working Group time-limited. However,
there is agreement that structure is necessary going
forward, not only to follow-up on the recommendations
in this report, but also to maintain and enhance the positive relationships and significant
progress that has been achieved to date.
The Working Group agreed that this structure needs to have equal representation from industry
(including contractor associations), organized labour, First Nations, and governments (provincial
and federal). In addition, the group agreed that this structure needs to be established as quickly
as possible after March 31, 2014. The Working Group noted that without the creation of a
structure prior to July 2014, there will be significant limitations in relation to being able to
continue collaborating on issues related to skills training and workforce planning to support the
construction and operation of LNG facilities. The Working Group is of the view that a
fragmented and uncoordinated approach to the skills training and workforce planning issues
could inhibit the success of LNG projects, creating ineffective approaches to training and a risk
of an increase in costs.
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Premier’s LNG Working Group – March 31, 2014 Page 12 of 33
In addition, a challenge relates to the coordination and collaboration of LNG workforce activities.
There are many LNG workforce-related initiatives underway or starting in B.C., including the
B.C. Natural Gas Workforce Strategy Committee and the Canadian Apprenticeship Forum.
LNG workforce planning and strategy development should be coordinated and linked by
stakeholders to maximize LNG opportunities. The precise structure and membership along with
issues of funding and Terms of Reference would be determined at a later date.
TOR #1: Propose strategies and solutions to fill skills gaps via new entrant skills training
and upgrading skills of current members as identified in the B.C. Natural Gas Workforce
Strategy and Action Plan.
This TOR recognizes that there are labour and skills gaps that exist to construct and operate
LNG facilities – regardless of the final number of facilities constructed in B.C. As noted above
(on page 6), the Strategy and Action Plan has developed a number of action items that are
important to facilitate building the necessary capacity and labour supply. Skills gaps will exist
for apprenticed labour, other occupations, and skilled labour. This TOR also notes that skills
gaps could be filled with new entrants to the labour force and by upgrading the skills of current
members of the workforce (including those outside the membership of private sector unions).
The Working Group has identified potential strategies and solutions in three categories to
support this TOR – training; education and career path mapping; and planning for
apprenticeships and skilled labour.
Training
A significant gap identified by the Working Group is the need for training. As outlined above,
there are labour supply challenges to meet the workforce needs for both the construction and
the operation of LNG facilities. It also takes significant time to attract, recruit, train (both
technical instruction and on-the-job), and certify a worker in a trade. In addition, there are
barriers to entry into certain trades and other occupations that limit access and barriers that
delay completion of training. These barriers include requirements for a driver’s licence,
accommodation, and living expenses while training.
Recommendation #1:
Develop a structure with equal representation from industry (including
contractor associations), organized labour, First Nations, and governments to
participate and enable the skills training and workforce planning issues leading
to employment in the LNG opportunity on an on-going basis after March 31,
2014. The structure, membership, and Terms of Reference should be
established no later than July 1, 2014 in consultation with the members of the
Premier’s LNG Working Group. In addition, the structure should be established
in coordination with other LNG workforce activities already underway.
Final Report to the Premier and Minister of Jobs, Tourism and Skills Training and Minister Responsible for Labour
Premier’s LNG Working Group – March 31, 2014 Page 13 of 33
Recognizing that final investment decisions by LNG proponents are pending and that
construction and operation may not come to fruition for a number of years, the critical point that
the Working Group emphasizes with respect to training is that the planning for training needs to
begin immediately. The importance of beginning training now is not just to have a robust and
qualified workforce in place to meet demand, but to have projects that allow for on-the-job
training for those who are still in the learning process (e.g., apprentices). The Working Group
also recognized that there are a myriad of training opportunities that exist today that could and
will be leveraged into the overall plan for staffing proposed LNG projects.
Before training can begin, it is important to know the workforce requirements. As described
earlier under “The Workforce Needs to Build an LNG Facility”, we can begin to project the types
and numbers of jobs needed and by when they
will be needed. The training needs should also
take into account the fact that, as noted above,
there could be multiple projects on-going over the
next several years that may require the same
kind of workforce or, opportunistically, may
provide some of the necessary workforce
because of the timing of completion of certain
work on the projects. Training is critical to
improve the working lives of British Columbians
and Canadians by providing the skills necessary
for future opportunities like LNG. While not
focused exclusively on apprenticeship training, the Working Group also noted the importance of
examining what a realistic goal for apprenticeship training numbers might be. As noted above,
the necessary training does pertain to skilled trades (apprenticeship) and to other occupations
and skilled labour.
Another training challenge is that LNG facilities deal with flammable and combustible
hydrocarbons. As a result, it is important that the workforce be properly trained and skilled in
their safe operation.
A. The Working Group is of the view that a coordinated and planned approach to training is
crucial to the successful development of the LNG opportunity. This means determining
what modes of training are needed, identifying potential gaps, and locating potential
opportunities already in existence to better those currently in the training system with
potential on-the-job learning experiences. At the same time, training needs to start as
soon as possible to ensure that there is a large enough and sufficiently skilled workforce
in place to support the proponents once they are ready to break ground on a project.
The opportunity that exists with training is that while it enables the province to meet the
LNG challenge, it can also establish a legacy in how it can result in a skilled workforce
for the future.
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Premier’s LNG Working Group – March 31, 2014 Page 14 of 33
To facilitate the development of training programs, the Working Group identified the
opportunity to develop and share an inventory of workforce needs to support the
construction and operation of multiple LNG facilities. The logic of an inventory includes
facilitating the transition of workers from one project to another to reduce training needs.
In order to do this, the Working Group discussed the importance of establishing one
comprehensive and accepted data source (e.g., BuildForce Canada).
Another opportunity would be to determine the number of training placements already
available in B.C. along with the number of people already in training and apprenticeship
programs. It would also make sense to determine the role for organizations such as
post-secondary institutions and the Industry Training Authority (ITA) in working with
industry and organized labour on trades training to meet the LNG opportunity. The ITA
is funded by government and leads and coordinates B.C.’s skilled trades system,
including the issuance of credentials and the management of apprentices. Note that as
of March 31, 2014, the ITA is going through a review of its role and function as directed
by Minister Bond on August 21, 2013. There was discussion about the importance of
the ITA Apprenticeship Coordinators and the role they can play in increasing the number
of successful trades graduates.
The Working Group also identified the importance of engaging First Nations and training
institutions to determine what role they can play in training. Finally, it was suggested
that the province consider initiating discussions with foreign governments (e.g.,
Australia, Trinidad) about options to train B.C. workers in the operation of LNG facilities.
B. The skilled labour needed to construct, maintain, and operate LNG facilities is part of a
larger labour pool that may be working on many of the other major industrial projects
within B.C. and across Canada. This may result in workers in the skilled trades being
mobile as they move from project to project. The need for a mobile workforce also
means that workers need to have skills that are applicable to a variety of industries. For
example, a pipefitter working on a pipeline may also be able to apply the trade to a
mining project with minimal upgrading. With this in mind, there may be potential to
better coordinate training across B.C. and Canada recognizing that the workers who
perform work in one area may make up the workforce on another project only a few
years later. In addition, there may be an opportunity to coordinate efforts by bringing
industry resources and expertise together with in-house training and public and private
sector training to maximize benefits.
Recommendation #2:
Begin planning and training British Columbians immediately for the LNG
opportunity.
Final Report to the Premier and Minister of Jobs, Tourism and Skills Training and Minister Responsible for Labour
Premier’s LNG Working Group – March 31, 2014 Page 15 of 33
An additional consideration is whether LNG proponents would be willing to offer job
opportunities to workers who may move on to other projects with other proponents
and/or other industries. It would also be worth discussing whether B.C. can augment,
leverage, and/or promote the work
already done by other jurisdictions
and organizations to create a
national inventory of skilled and
other job opportunities and/or
available apprentices. The Working
Group also discussed whether
government, industry, organized
labour, and First Nations training
initiatives can be combined to be
more efficient. The Working Group
also queried whether it would be
possible to leverage industry funds
with funds provided by the federal
government through the Labour
Market Agreement and Labour
Market Development Agreements to create and fund industry specific-training programs.
There are likely lessons to be learned from the experience of LNG and major projects in
other jurisdictions (including Alberta) so that B.C. can better coordinate workforce
training and planning. The Working Group discussed how LNG proponents can engage
contractors to manage the design and build of major projects on their behalf. These
contractors, also referred to as EPCM (Engineering, Procurement, and Construction
Management), engage in work that can include the hiring and management of
subcontractors, through to managing procurement, construction work, and permitting.
Generally speaking, the EPCM is active in the pre-construction and construction phases
(or until an LNG facility becomes operational when the LNG proponent takes it over). As
the EPCMs are responsible for managing a huge workforce comprised of thousands of
skilled workers, including apprentices, there may be potential for the EPCMs to support
the high-level training of various skilled professions, including apprenticeships that in
turn can translate to an available workforce that can fill some of the operational jobs
once construction concludes.
Recommendation #3:
Training should be coordinated across B.C. and Canada to maximize the
effectiveness of the existing labour pool and lead to employment.
Final Report to the Premier and Minister of Jobs, Tourism and Skills Training and Minister Responsible for Labour
Premier’s LNG Working Group – March 31, 2014 Page 16 of 33
C. Prerequisites like education and certification (e.g., driver’s licence, first aid) are critical to
developing workers who likely will have a higher degree of success once they get into a
training program and then onto the job. However, these same requirements can also
serve as a significant barrier and even as a deterrent to those who are interested in a
career in the skilled trades. These barriers can be even more daunting if it is unclear
what is required and how requirements can be obtained. There are programs that
provide life skills development for youth from under-resourced communities that have
reduced barriers and enabled access to apprenticeships in the building trades (e.g., the
Hammer Heads program established by the Central Ontario Building Trades).
BladeRunners is another example of a program that provides basic skills training and job
readiness for at-risk youth (aged 15 to 30) as is the B.C. Construction Association’s
Skilled Trades Employment Program.
It is also important to ensure the capacity
for literacy and essential skills
development to support local and regional
work-based training and employment for
LNG facilities. An example is SkillPlan a
not-for-profit organization based in B.C.
that provides learning solutions in the
construction industry and in other sectors.
SkillPlan works with employers to develop
the skills of workers, including literacy and
numeracy skills. SkillPlan has a Board of
Directors that is made of up employer and
union organizations that financially
support the organization.
To support this work, it would be helpful
to identify the prerequisites for entry into
trades training along with any barriers
other than job placements to entry into
trades training. The next challenge would
be how to address these prerequisites
and barriers for those who are interested
in seeking training in the trades.
Recommendation #4:
Identify and remove barriers to entry into training while supporting literacy and
essential skills development to support local and B.C. work-based training and
employment.
Final Report to the Premier and Minister of Jobs, Tourism and Skills Training and Minister Responsible for Labour
Premier’s LNG Working Group – March 31, 2014 Page 17 of 33
D. It is well known that government provides significant funding in a variety of ways as an
investment in training – from the K-12 system to advanced education and to the ITA. At
the same time, other groups within industry and organized labour provide various
degrees of funding and training support, all with differing results. There may be an
opportunity to leverage resources by bringing industry resources and expertise together
with in-house training and public sector training to maximize benefits. In discussing the
issue of investing in training, the Working Group noted the importance of identifying
ways to more effectively invest in training and determining how successful investments
in training could be leveraged. The objectives are to make sure the right kinds of
training are being delivered in ways that maximize results, to identify opportunities for
industry to participate in training, and to learn from the training expertise and experience
of the building trades unions.
Education and career path mapping
The discussion around this principle focused on how to ensure people are aware of the career
opportunities that exist around LNG, whether it is youth still in school or those in trades training
now or those in industries where work is ending.
A. High schools, colleges, and cultural centres are the best placed institutions for identifying
people who have potential interests in the trades and in non-apprenticeable trades.
Apprenticeship programs could start as part of some high school curriculums and high
school counsellors and technology educators could serve as key contacts. Colleges
provide the technical training that is required to complete apprenticeship programs or
other programs to match workers to job opportunities. Multi-cultural organizations and
immigrant service providers can be resources for engaging people who have experience
in the trades in other countries about working in B.C. Campaigns aimed at these
institutions present an outreach opportunity to the potential LNG workforce. The
Working Group also discussed how career fairs provide an opportunity to engage people
interested in the LNG opportunity; however, too often career fairs happen without
industry participation and/or with no organization in attendance to actually offer tangible
employment opportunities.
In addition, it is important to target technology education classrooms and career
education coordinators in high schools and technical institutions for support and
marketing. Teachers in technology education programs at all levels can provide
coordinated training and mentorship opportunities. Technology programs within all
educational institutions may be the most fertile recruiting grounds for the LNG
Recommendation #5:
Increase the efficiency and effectiveness of the investment in training by
leveraging successful government, union, and private training programs.
Final Report to the Premier and Minister of Jobs, Tourism and Skills Training and Minister Responsible for Labour
Premier’s LNG Working Group – March 31, 2014 Page 18 of 33
opportunity. The students in these programs are already actively engaged in learning
about the trades and technical occupations and in many cases may be working towards
an apprenticeship designation. There could be benefits from engaging the technology
education teachers in these programs as well as career education counsellors to
promote the LNG opportunity and to help prepare students for a career in the sector.
B. One of the biggest challenges facing major projects is finding ways to attract the
workforce to where the work is actually located. Many of the training institutions and
opportunities are located in southern B.C. which is away from the location of the work.
However, programs like Northern Opportunities afford the chance to train in the north
and stay in the north. Northern Opportunities is a partnership of three northeast B.C.
school districts, Northern Lights College, First Nations, and industry that provides “young
people with a seamless learning pathway from secondary school to post-secondary
training leading to career success.” There may be an opportunity to expand this
program into the northwest of the province. In addition, the Coastal Pathways
Partnership, a program in the northwest that provides skills training initiatives and
projects that benefit the Northern Coastal region, could be expanded. One of the
objectives would be to enable employers to take people from these programs and match
them to job opportunities.
At the same time, there are relatively untapped labour pools such as
some First Nations communities that may be well placed to realize
benefits from participating in the LNG opportunity. Another challenge is
ensuring that those prepared to enter the workforce understand the
types of careers available for skilled and certified labour. An
opportunity exists to create awareness in northern and rural B.C.
communities about how to pursue meaningful employment and/or a
career in the trades. A further opportunity would be to identify other
cost-effective programs available that would accelerate young people’s
connection to the workplace, such as the Aboriginal Training and
Mentoring Association.
Recommendation #6:
In conjunction with recommendation #7, industry, governments, organized
labour, and First Nations should partner to conduct campaigns and career fairs
in high schools, colleges, and cultural centres on the LNG opportunity.
Recommendation #7:
Promote awareness of job opportunities in B.C., including work-based training
with a focus in rural, northern, and First Nations communities.
Final Report to the Premier and Minister of Jobs, Tourism and Skills Training and Minister Responsible for Labour
Premier’s LNG Working Group – March 31, 2014 Page 19 of 33
Plan for apprenticeships and skilled labour
Creating a body of skilled workers is one of the more important legacies that the LNG
opportunity can create for British Columbians. Apprenticeship programs often take four or more
years to complete. Of this, roughly fifteen percent of the time is spent in technical training,
which is learning offered in an institution like a college or a training facility. The other 85 percent
is hands-on learning as apprentices engage in on-the-job learning with more experienced
mentors who are able to teach apprentices about the trade. One challenge that has been
identified is those in apprenticeship programs find it difficult to get the on-the-job experience. At
the same time, industry, which often is responsible for offering the jobs, does not have access to
information about those people who are in apprenticeship programs and are seeking
employment opportunities. It is also important to recognize that the LNG proponents do not
have apprenticeship placements available at this time. As noted above, the outstanding review
of the ITA will be an important piece in the planning for apprenticeships and skilled labour.
Similar to apprenticeships, creating trained and certified workers in other skilled professions
(e.g., engineers, technologists, and truck drivers) requires planning and coordination to ensure
they are available when needed.
A. The Working Group discussed the importance of establishing an inventory of individuals
currently in apprenticeship programs who are seeking employment and an inventory of
other non-apprenticeship skilled workers seeking employment. The challenge is to
determine how to gather this data and whether there is a role for the ITA or the province
(e.g., WorkBC). In addition, the building trades unions are engaged in the training of
apprentices and have the ability to share information. The opportunity exists to provide
individuals in apprenticeship programs with access to better information about work
placements and on-the-job training opportunities.
The Working Group also noted the importance
of identifying journeypersons in the system who
are available to provide mentoring and on-the-
job training to apprentices. Without an
adequate supply of journeypersons, the ability
to train and certify apprentices can be severely
restricted. It is not clear if a natural ratio of
journeyperson-to-apprentices that balances the
quality of training, productivity, safety, and labour costs can be created.
Recommendation #8:
Establish an inventory of individuals currently in apprenticeship programs and
other non-apprenticeship skilled workers seeking employment. Include in the
inventory journeypersons who are available to provide mentoring and on-the-job
training to apprentices.
Final Report to the Premier and Minister of Jobs, Tourism and Skills Training and Minister Responsible for Labour
Premier’s LNG Working Group – March 31, 2014 Page 20 of 33
B. The Working Group discussed whether it is possible to increase apprenticeship spaces
and other skilled worker positions in B.C. by leveraging other projects, including public
infrastructure projects. These projects have the potential to provide opportunities to
apprentices by providing the on-the-job training they need to complete their certification.
Once apprentices are certified, these workers could potentially transition to other major
projects like the construction and operation of LNG facilities. An assessment would be
required as to whether government or other public works projects provide suitable
opportunities to employ apprentices or other skilled workers. In addition, an assessment
must be made as to whether it is possible to have a minimum number of apprentices on
certain public infrastructure projects or other non-public projects, including LNG
construction (while noting that such work is likely to be performed by third party
contractors). Specifically, the Working Group agreed to aspire to a goal of having 25
percent overall of the apprenticeable trades workforce on LNG-related construction
projects.
The Working Group also discussed other
opportunities for apprentices and noted
that government should consider having a
minimum number of apprentices on public
infrastructure projects.
The Working Group also discussed
whether funding for apprenticeships and
training to support the LNG opportunity
can come from industry and/or government. In addition, there was some
discussion about a need for investment in facilities to house training opportunities.
C. Some private sector unions have very high apprenticeship training completion success
rates. Some of the private sector unions have joint training boards that include
representatives from employers and organized labour that collaboratively coordinate and
deliver training. Included in these apprenticeship training programs are annual
investments in the millions of dollars. There are lessons to be learned from the
approach that unions are taking which could be applied with success to other
institutions. In addition, it should be noted that there are specific projects in place that
have established training and employment benefits for First Nations communities.
Recommendation #9:
Aspire to a goal of having 25 percent overall of the apprenticeable trades
workforce on LNG-related construction projects and whether funding for
apprentices can come from industry and/or government. In addition,
government should consider having a minimum number of apprentices on
public infrastructure projects.
Final Report to the Premier and Minister of Jobs, Tourism and Skills Training and Minister Responsible for Labour
Premier’s LNG Working Group – March 31, 2014 Page 21 of 33
Another of the strategies identified by the Working Group is to consider re-locating
training to areas where jobs are needed. Enabling training to occur near worksites may
encourage workers to stay in the area after completion of training and may reduce the
likelihood of those workers returning to other areas of the province. If done in
conjunction with LNG facility and infrastructure development, training near work
locations could encourage the permanent redeployment of workers and their families
into northern and rural B.C. once training is completed. A model to consider is the UA
Piping Industry College of B.C. (UAPICBC) which supplies highly trained and qualified
journeypersons and builds capacity in skilled labour in the construction industry in B.C.
The model begins with promoting and advocating for careers in the trades followed by
individualized action plans and monitoring for students to ensure their success. The
UAPICBC has a significant network of employer and training partners which allows
flexibility and expansion across the province. In addition, the UAPICBC offers
apprenticeship training in plumbing, sprinklerfitting, steamfitting, and welding in two
locations in northern B.C. (Fort St. John and Kitimat)
An opportunity exists to review how the profile of northern training institutions can be
enhanced, including by identifying a role for private sector unions to enhance the profile
of these institutions. Further, consideration could be given to whether there are training
opportunities that could be shifted to different locations in B.C.
TOR #2: Propose roles for private sector unions in recruiting members from southern
British Columbia to the north to ensure British Columbians are first in line for these
positions. Propose roles for private sector unions in accessing skilled workers from
across Canada and the United States.
This TOR is based on the recognition that private sector unions have experience and a track
record of success in the mobility of its members to projects within regions and across
jurisdictions, including into Canada from the United States. The Working Group has identified
potential strategies and solutions in five categories to support this TOR – identifying
organizations that have delivered via a mobile workforce; improving the perception of rural and
northern B.C.; making LNG jobs attractive; understanding the role of private sector unions in
training; and supporting workers from other jurisdictions to stay in B.C.
Recommendation #10:
Review the approach used by private sector unions with respect to apprentices
and by First Nations with respect to training to determine if their approach can
be improved or applied more broadly.
Final Report to the Premier and Minister of Jobs, Tourism and Skills Training and Minister Responsible for Labour
Premier’s LNG Working Group – March 31, 2014 Page 22 of 33
Identify organizations that have delivered by way of a mobile workforce
The development of LNG facilities is not the first development in B.C. to be constructed by way
of a mobile workforce. There are examples of projects that have been completed or are
currently underway in B.C. that have unionized and non-unionized workforces made up, in part,
of workers from other areas of the province and indeed other jurisdictions. For example, the
Kitimat Modernization Project (KMP) at Rio Tinto Alcan is a US$3.3 billion project underway to
modernize the aluminium smelter and is being constructed by way of a Project Labour
Agreement with 16 building trades unions. At the peak of construction in the summer of 2014,
there may be just over 3,000 workers. In the fall of 2013, there were just over 2,000 workers,
with 92 percent from Canada. One in three of the workers were local (including five percent
First Nations of which the majority are from the Haisla Nation). The balance of the workforce
was made up of 42 percent from elsewhere in B.C., 17 percent from elsewhere in Canada, and
eight percent from outside of Canada (exclusively workers from American building trades local
unions with the same qualifications as Canadian workers). While KMP is a modern example,
the use of Project Labour Agreements and mobile workforces have a significant history of use in
B.C. stemming back to the 1960s with, for example, large-scale hydro-electric infrastructure
development. This model continues today under the Allied Hydro Agreement. Local labour will
only ever meet a portion of the skilled labour needs of a specific project such that there is need
for a mobile workforce, particularly during peak construction periods. The pipeline industry is
another example of success in using a mobile workforce, even though Project Labour
Agreements are not the norm for the industry. Instead, the Pipe Line Contractors Association of
Canada administers 10 collective agreements with the four pipeline craft unions and utilizes a
co-operative joint labour/management panel (Canadian Pipeline Advisory Council) to discuss
issues that affect the industry as a whole. This has led to successful and efficient use of mobile
labour for decades. Much can be learned from organizations that have had success delivering
projects using a mobile workforce.
There is also a role to inventory
and determine best practices of
trades training and mobility
programs already available in
Canada. One such program is
Helmets to Hardhats Canada that,
in partnership with Canada's
building trades unions, offers
apprenticeship opportunities to
former members of the regular or
reserve force of the Canadian
Forces to transition into the
construction industry. There also
may be lessons available from the
Canadian Forces or U.S. military
in training workers and keeping
their workforces mobile.
Final Report to the Premier and Minister of Jobs, Tourism and Skills Training and Minister Responsible for Labour
Premier’s LNG Working Group – March 31, 2014 Page 23 of 33
Another key role for private sector unions in delivering worker mobility is to ensure any barriers
in accessing skilled tradespeople outside B.C. are addressed. Whether it is identifying any
changes needed to the trades-focused inter-provincial Red Seal certification (Interprovincial
Standards Red Seal Program) or clarification of regulated occupations or certifications and
licensing across provincial and territorial borders, private sector unions can play a role in
identifying challenges to enabling mobility of tradespeople and other skilled labour groups.
A. It is clear that there are projects that have been completed by employing a mobile
unionized workforce. The challenge is to identify as many such projects as possible to
determine what lessons can be learned from the use of a mobile workforce. This may
include developing an understanding of the advantages and disadvantages of a Project
Labour Agreement. Further, when it comes to a mobile workforce, there are issues
related to addressing qualification and certification with workers from outside B.C.
whether they are in the trades or other skilled (non-trades) occupations. An objective is
to maintain high levels of trades qualifications including Red Seal certification.
Improve public perception in order to attract and retain workers to rural and northern
B.C.
With approximately 70 percent of B.C.’s population
living in the southwest corner of the province and a
misunderstood or incomplete perception of rural and
northern B.C., new strategies and approaches are
needed to attract workers to these opportunity-rich
areas. How these strategies are developed and who
they involve requires more examination and
involvement by a broader range of stakeholders,
including examining approaches like having private
sector unions encourage their members to temporarily
leave southern B.C. to go north for work. It is
important to ensure the migration of workers does not
impact other projects, especially commercial and
institutional, in southern B.C.
A. The Working Group discussed whether there is a role for organized labour, industry,
First Nations, or others in an advertising strategy about work and life in rural and
northern B.C. It was noted that private sector unions have successfully encouraged their
members to work and live in such areas.
Recommendation #11:
Explore and analyze projects that have used a mobile workforce. In addition, it is
important to identify and resolve the barriers to worker mobility in relation to
trades qualification and certification.
Final Report to the Premier and Minister of Jobs, Tourism and Skills Training and Minister Responsible for Labour
Premier’s LNG Working Group – March 31, 2014 Page 24 of 33
There are opportunities for worker mobility as workers finish industrial and commercial
construction projects in southern B.C. or as work in certain industries or projects winds
down to be transitioned to work in other areas of the province on different projects.
Targeting these areas should enable those already (or about to become) unemployed
with the necessary experience and skills to be transitioned into similar work to support
the LNG opportunity. A further opportunity to understand worker mobility opportunities
would be engage in a discussion with other jurisdictions that have managed the same
issues (e.g., Fort McMurray, the Northwest Territories, and Newfoundland). Finally, it is
important to determine if there is a role for government, northern communities, and/or
industry to encourage people to move to work and life in the northern parts of the
province.
Make LNG construction and operations as attractive as possible to workers in B.C. and
other jurisdictions
As noted earlier, the LNG opportunity comes at a
time when there is competition for skilled labour.
This competition will require that industry identify
the attractiveness of the employment
opportunities. There is a need to compile and
document best practices on working and living
conditions to maximize the potential that the LNG
opportunity offers, including those that will
encourage workers to want to construct and/or
operate an LNG facility, particularly in northern
and remote B.C. In addition, recognizing that the
construction and operation of an LNG facility
will likely be conducted by large portions of a
workforce from outside the geographic area of
the facility, attention should be paid to a variety of
issues including access to the work.
Recommendation #12:
Target areas of opportunity by focusing on workers finishing construction or
other projects in all areas of the province.
Recommendation #13:
Explore best practices within the LNG sector and other competing industries
with respect to the conditions necessary to attract a mobile workforce.
Final Report to the Premier and Minister of Jobs, Tourism and Skills Training and Minister Responsible for Labour
Premier’s LNG Working Group – March 31, 2014 Page 25 of 33
Develop a plan to support workers from other jurisdictions to stay in B.C.
For skilled labour from other jurisdictions seeking work in B.C., there is an opportunity for
government, industry, organized labour, and First Nations to support them in staying in the
province on a more long-term basis. In addition, the pool of skilled landed immigrants in
southern B.C. should not be overlooked. Approximately 85 percent of landed immigrants in
B.C. have some post-secondary education. With attraction strategies and the recognition of
skills and training (i.e., foreign qualification recognition (FQR)), they can supplement other
skilled labour pools to support LNG development. The Ministry of Jobs, Tourism and Skills
Training and Minister Responsible for Labour has initiated a project to identify barriers to FQR in
key LNG occupations and to develop an action plan. It may also be possible for LNG projects to
need to recruit immigrants as permanent residents through the Provincial Nominee Program. It
is important to identify the barriers for workers from other jurisdictions to stay in B.C. and the
ways they can be reduced.
TOR #3: Development of a protocol for the use of temporary foreign workers in B.C.
as a way to ensure economic development is not impeded by skills shortages but
conducted in a way to maximize British Columbian and Canadian access to jobs. The
protocol would recognize that local workers, including those from First Nations
communities, have priority access to jobs, followed by provincial, national, and
international workers.
Temporary Foreign Workers (TFWs) have a presence in B.C. and throughout Canada. TFWs
gain access to work in B.C. through a program administered by the federal government. The
TFW Program has come under public scrutiny recently due to allegations that TFWs are taking
jobs in place of Canadian, and specifically British Columbian, workers.
These concerns are counter-balanced by, as noted earlier in this report, the legitimate workforce
needs associated with the LNG opportunity and other projects planned between now and 2023.
Simply put, B.C. does not have the labour supply to meet the challenge – and that is the
challenge the Working Group was established to address, in addition to the work of the B.C.
Natural Gas Workforce Strategy Committee. As a result, it is reasonable to conclude that at
some point, it is possible that TFWs in some capacity will be needed to enable B.C. to meet the
LNG opportunity. The challenge for the Working Group – collectively and each individual
organization – is to begin planning in advance of the need and design a protocol that will enable
the use of TFWs but that will also ensure that their use is a last resort. As the TOR clearly
states, and as the Working Group unanimously agreed, the priority is to ensure that qualified
local workers have priority access to jobs, with a radiating priority out to the rest of B.C. and
Canada before using TFWs and those emigrating to B.C. by way of the Provincial Nominee
Program or the federal Skilled Worker Program.
Recommendation #14:
Develop a plan to support workers from other jurisdictions to stay in B.C.
Final Report to the Premier and Minister of Jobs, Tourism and Skills Training and Minister Responsible for Labour
Premier’s LNG Working Group – March 31, 2014 Page 26 of 33
On a couple of occasions during the meetings of the Working Group, the discussion of the use
of TFWs challenged the participants to balance the interests of their respective organizations
and the language of TOR #3. Industry’s interest with respect to TFWs generally means having
the flexibility to employ the necessary skilled labour at the right time in either the construction or
the operation of an LNG facility. For organized labour and First Nations, their interest with
respect to TFWs generally means that all parties have done everything reasonably possible to
ensure first access to British Columbians and Canadians for the jobs (skilled and unskilled)
presented by the LNG opportunity. Government’s interests with respect to TFWs generally
means ensuring the balance between funding an education system (K-12, post-secondary, and
ITA) that produces the workers of the future and access to TFWs for employers only when the
necessary skills are not available in British Columbia or Canada at the time they are needed.
Within the interests outlined above, the elements of a protocol consistent with the language of
TOR #3 begin to crystallize. The Working Group is of the view that if progress can be made on
moving forward after March 31, 2014 on most of the preceding recommendations, including the
structure to continue dialogue on skills training and workforce planning issues related to the
LNG opportunity, then that will pave the path to ensuring as many British Columbians and
Canadians as possible are trained and have access to jobs brought about by the LNG
opportunity.
To support the development of a protocol, it is important to ensure that all stakeholders
understand how the federal TFW Program works, including the steps that must be undertaken
before an employer is able to gain access to TFWs. It is also important to review projects where
the use of TFWs has been successful – that is, the circumstances of their use are clearly
defined. For example, the Working Group identified the Kitimat Modernization Project (KMP) at
Rio Tinto Alcan, which allows for the use of TFWs, as a project from which lessons can be
learned. In addition, there is a need to understand the role of the provincial government in
working with the federal government on issues related to the use of TFWs, especially as the
TFW Program undergoes review and change by the federal government. Finally, it is important
to ensure that when and if the use of TFWs is needed, that mechanisms are developed to
ensure they are trained and certified to the same level (or a reasonable equivalency) as
Canadian workers to enable their safe and efficient functioning – and of course to ensure the
safety of others with whom the TFWs are working.
Recommendation #15:
Further refine and develop a process for the use of Temporary Foreign Workers
in the context of an overall strategy that identifies the workforce needs of the
LNG opportunity and immediately begins a skills training plan to develop as
many British Columbian and Canadian workers as possible to meet those
needs. The structure contemplated in Recommendation #1 will be seized with
the responsibility to refine and develop a process for the use of Temporary
Foreign Workers.
Final Report to the Premier and Minister of Jobs, Tourism and Skills Training and Minister Responsible for Labour
Premier’s LNG Working Group – March 31, 2014 Page 27 of 33
IV. NEXT STEPS AND CONCLUSION:
The opportunity presented by the possibility of the construction and operation of multiple LNG
facilities in B.C. is exciting and promising. However, the opportunity also presents a significant
skills training and workforce challenge recognizing that B.C. does not currently have the
necessary workforce available and ready to support it. Great work has been undertaken
already – and is in fact on-going – by the B.C. Natural Gas Workforce Strategy Committee to
develop actions to address the challenge. The Premier’s LNG Working Group, established in
September 2013, has met and considered several specific issues that are in addition to the work
of the Committee. The Working Group has, with the expertise and knowledge of industry,
organized labour, and First Nations, identified a number of strategies and solutions, based on
the Terms of Reference established by the Premier, that have the potential to address the LNG
workforce challenge. Premier Clark and Minister Bond, we are pleased to submit our final
report to you.
Respectfully submitted by the Premier’s LNG Working Group.
Final Report to the Premier and Minister of Jobs, Tourism and Skills Training and Minister Responsible for Labour
Premier’s LNG Working Group – March 31, 2014 Page 28 of 33
Appendix I: Terms of Reference
Premier’s LNG Working Group
Working Group to be composed of representatives from Government, Labour and Industry as
determined by the Premier’s Office in concert with other partners.
For Discussion:
Propose strategies and solutions to fill skills gaps via new entrant skills training and upgrading
skills of current members as identified in the B.C. Natural Gas Workforce Strategy and Action
Plan.
Propose roles for private sector unions in recruiting members from southern British Columbia to
the north to ensure British Columbians are first in line for these positions.
Propose roles for private sector unions in accessing skilled workers from across Canada and
the United States.
Development of a protocol for the use of temporary foreign workers in B.C. as a way to ensure
economic development is not impeded by skills shortages but conducted in a way to maximize
British Columbian and Canadian access to jobs. The protocol would recognize that local
workers, including those from First Nations communities, have priority access to jobs, followed
by provincial, national, and international workers.
Proposed timelines:
Working Group formed by September 30, 2013.
Interim Report by January 31, 2014.
Final Report by March 31, 2014.
Final Report to the Premier and Minister of Jobs, Tourism and Skills Training and Minister Responsible for Labour
Premier’s LNG Working Group – March 31, 2014 Page 29 of 33
Appendix II:
Working Group Participants and Meetings
The Working Group met in person in Vancouver on November 12, December 5 and 17, 2013,
January 13 and 24, February 13 and 27, and March 14 and 20, 2014.
Government Industry Labour
Trevor Hughes (chair), Assistant
Deputy Minister, Labour Division,
Ministry of Jobs, Tourism and
Skills Training and Minister
Responsible for Labour.
Supported by Jennifer Goad
and Nathan Nankivell.
David Keane, Vice President
Policy and Corporate Affairs, BG
Canada. Supported by Andrew
Burton, Kathleen Williams, and
Rick Wojcik.
Jim Sinclair, President, B.C.
Federation of Labour. Supported
by Michael Gardiner and Joe
Barrett.
Rob Mingay, Assistant Deputy
Minister, Labour Relations,
Public Sector Employers’ Council
Secretariat, Ministry of Finance.
Bruce Wells, Director of Project
Planning and Execution,
TransCanada. Supported by
Kiel Giddens.
Tom Sigurdson, Executive
Director, B.C. and Yukon
Territory Building and
Construction Trades Council.
Scott MacDonald, Assistant
Deputy Minister, Labour Market
and Immigration Division,
Ministry of Jobs, Tourism and
Skills Training and Minister
Responsible for Labour.
Supported by Keith Godin.
Sarah McCullough, Director
External Affairs and
Communications, Spectra
Energy.
Joe Shayler, Business Manager
& Financial Secretary, United
Association of Journeymen &
Apprentices of the Plumbing &
Pipefitting Industry of U.S. and
Canada, Local 170. Supported
by Jeff Chapman.
Susan Brown, Executive
Director, Strategic Policy and
Planning, Ministry of Advanced
Education.
Rod Maier, Manager External
Relations & Communications
Kitimat LNG, Chevron.
Supported by Elio Artuso.
Mark Olsen, Business
Manager/Secretary-Treasurer,
Construction & Specialized
Workers’ Union, Local 1611
(Labourers).
Kursti Calder, Director, Labour
and Economic Planning, Ministry
of Natural Gas Development.
Supported by Brian Hansen.
Susanne Kajner, Director, HR &
Corporate Services, Progress
Energy Canada Ltd. Supported
by Tessa Gill, Pacific NorthWest
LNG Ltd.
Jud Martell, Training Co-
ordinator, Sheet Metal Workers’
International Association, Local
280.
Marc Maeseele, LNG Plant
Project Manager, Shell.
Supported by Ron Harry.
Dan Bradford, Past Vice-
President, B.C. Government and
Service Employees’ Union.
First Nations
Taylor Cross, Deputy Chief Counsellor, Haisla Nation. Supported by Matthew Clayton.
In addition, on December 23, 2013, the Working Group chair, Trevor Hughes, met with the chair
of the B.C. Natural Gas Workforce Strategy Committee, Geoff Stevens. There was a discussion
about the mandates of the two groups and opportunities to share ideas and initiatives moving
forward in support of the LNG opportunity.
Final Report to the Premier and Minister of Jobs, Tourism and Skills Training and Minister Responsible for Labour
Premier’s LNG Working Group – March 31, 2014 Page 30 of 33
Appendix III: Status of Liquefied Natural Gas (LNG) Projects in B.C.
as of March 31, 2014
LNG Export Facilities
LNG Project
(Location)
Proponent Volume
(MTPA)
National
Energy
Board
Export
Licence
B.C.
Environmental
Assessment
Office
Canadian
Environmental
Assessment
Agency
Discovery LNG
(Campbell River)
Quicksilver
Resources
Canada
Being
assessed
Not
Submitted
Not Submitted Not Submitted
Douglas Channel
Energy/BC LNG
(Kitimat)
Douglas
Channel Energy
Partner-ship,
Haisla Nation,
Golar LNG, LNG
Partners LLC
1.8 Approved n/a n/a
Kitimat LNG
(Kitimat)
Apache Corp
and Chevron
10 Approved Certificate
Issued
n/a
LNG Canada
(Kitimat)
Shell Canada,
KOGAS,
Mitsubishi and
PetroChina
24 Approved Substituted EA*
Pre-Application
Pacific Northwest
LNG
(Port Edward)
PETRONAS,
JAPEX,
Petroleum
Brunei, India Oil
Corp.
18 Approved Coordinated EA*
Pre-Application
Prince Rupert LNG
(Port of Prince Rupert)
BG Group 21 Approved Coordinated EA*
Pre-Application
Woodfibre LNG
(Squamish)
Woodfibre
Natural Gas
Limited
2.1 Approved Substituted EA*
Pre-Application
Triton LNG
(location TBD)
AltaGas Ltd and
Idemitsu
Canada Corp
2.3 Under
Review
Not Submitted Not Submitted
WCC LNG Ltd.
(location TBD)
Imperial Oil,
ExxonMobil
Canada
30 Approved Not Submitted Not Submitted
Aurora LNG Nexen 24 Under Not Submitted Not Submitted
Final Report to the Premier and Minister of Jobs, Tourism and Skills Training and Minister Responsible for Labour
Premier’s LNG Working Group – March 31, 2014 Page 31 of 33
LNG Export Facilities
LNG Project
(Location)
Proponent Volume
(MTPA)
National
Energy
Board
Export
Licence
B.C.
Environmental
Assessment
Office
Canadian
Environmental
Assessment
Agency
(Grassy Point near
Prince Rupert)
(subsidiary of
CNOOC),
INPEX Corp,
JGC Corp
Review
Woodside Energy
LNG
(Grassy Point near
Prince Rupert)
Woodside
Petroleum Ltd
Being
assessed
Not
Submitted
Not Submitted Not Submitted
Kitsault Energy
Project
(Kitsault)
Kitsault Energy
Ltd.
20 Under
Review
Not Submitted Not Submitted
Stewart Energy LNG
(location TBD)
Canada Stewart
Energy Group
Ltd.
30 Under
Review
Not Submitted Not Submitted
* Substituted EA – projects reviewed by BC EAO on behalf of the federal government to fulfill
requirements of both agencies. Ministers from each government make independent decisions
based on the single process.
* Coordinated EA – processes are aligned to limit unnecessary duplication between federal and
provincial information requirements. Canadian Environmental Assessment Agency leads both
these EAs because both projects are proposed to be located on federal lands.
LNG Domestic Facilities
LNG Project
(Location)
Proponent Volume
(MTPA)
National
Energy
Board
Export
Licence
B.C.
Environmental
Assessment
Office
Canadian
Environmental
Assessment
Agency
Tilbury LNG Facility
(Vancouver)
Fortis BC Being
assessed
n/a n/a n/a
Ferus
(Vancouver)
Ferus, ENN Being
assessed
n/a n/a n/a
Final Report to the Premier and Minister of Jobs, Tourism and Skills Training and Minister Responsible for Labour
Premier’s LNG Working Group – March 31, 2014 Page 32 of 33
Natural Gas Pipelines
LNG Project Proponent Capacity
(Bcf/d)
B.C.
Environmental
Assessment
Office
Canadian
Environmental
Assessment
Agency
Westcoast
Connector Gas
Transmission
Spectra (Facility – Prince
Rupert LNG)
4.2 Pre-Application N/A
Coastal GasLink TransCanada (Facility –
LNG Canada)
1.7 – 5.0 Application
accepted Feb 28;
review starts
March 7
N/A
Prince Rupert Gas
Transmission
TransCanada (Facility –
Pacific Northwest LNG)
2.0 – 3.6 Pre-Application N/A
Eagle Mountain –
Woodfibre Gas
Pipeline
FortisBC Energy (Facility –
Woodfibre LNG)
0.22 Pre-Application N/A
Pacific Northern
Gas Looping
Project (PNG)
Pacific Northern Gas (Sub-
EA Facilities)
0.6 Pre-Application N/A
Pacific Trail
Pipelines
Apache/Chevron (Facility –
Kitimat LNG)
1.0 Amendment N/A
Final Report to the Premier and Minister of Jobs, Tourism and Skills Training and Minister Responsible for Labour
Premier’s LNG Working Group – March 31, 2014 Page 33 of 33
Appendix IV: References and Resources
Premier’s Office:
News release – Action plan released for B.C.’s LNG sector.
http://www2.news.gov.bc.ca/news_releases_2013-2017/2013PREM0081-001146.htm
News release – B.C. puts LNG on the world stage once more.
http://www.newsroom.gov.bc.ca/2013/11/bc-puts-lng-on-the-world-stage-once-more.html
Ministry of Natural Gas Development:
Liquefied Natural Gas: A Strategy for B.C.’s Newest Industry.
http://www.gov.bc.ca/ener/popt/down/liquefied_natural_gas_strategy.pdf
British Columbia’s Liquefied Natural Gas Strategy – One year update.
http://www.gov.bc.ca/com/attachments/LNGreport_update2013_web130207.pdf
LNG 101: A Guide to British Columbia’s Liquefied Natural Gas Sector.
http://engage.gov.bc.ca/lnginbc/files/2013/11/LNG101.pdf
International LNG in B.C. Conference, May 13 and 14, 2014.
https://www.lnginbc-register.ca/register
Ministry of Jobs, Skills Training and Tourism and Minister Responsible for Labour:
B.C. Jobs Plan.
http://www.bcjobsplan.ca/
B.C. Skills and Training Plan.
http://www.bcjobsplan.ca/skills/bc-skills-and-training-plan/
Ministry of Advanced Education:
News release – Skills training in the oil and gas sectors gets boost.
http://www2.news.gov.bc.ca/news_releases_2013-2017/2013AVED0046-001901.pdf
Resource Training Organization:
B.C. Natural Gas Workforce Strategy and Action Plan 2013.
http://www.rtobc.com/Assets/RTO+Assets/About+RTO/BC+NG+Strategy+2013JUL.pdf